VC Firm Predicts Smartphones Obsolete in 5 Years, Bets on Voice-Activated Rings

Jon Callaghan says the smartphone‘s reign is ending. The True Ventures co-founder made the bold prediction in a recent interview. He believes our current phone habits will vanish within a decade.

True Ventures is betting millions on this future. The firm is investing in new hardware that makes phones look outdated. This shift represents a fundamental change in human-computer interaction.

A History of Backing Unconventional Tech Winners

True Ventures has a strong track record. The firm managed early wins with Fitbit and Peloton. It also backed smart doorbell maker Ring before its massive sale.

According to TechCrunch, the firm operates quietly. It focuses on a tight network of repeat founders. This strategy has delivered over 60 successful exits from its portfolio.

The latest bet is on a company called Sandbar. Its product is a voice-activated ring worn on the finger. The device acts as a “thought companion” for capturing ideas.

The Broader Shift Beyond AI Hype and Mega-Rounds

Callaghan sees a crowded, capital-intensive AI infrastructure wave. He believes the real value is in the application layer. New interfaces will unlock behaviors we can’t yet imagine.

This philosophy guides True’s investment discipline. The firm writes seed checks between three and six million dollars. It avoids the billion-dollar valuation frenzy of other AI startups.

Market trends support this view. Smartphone growth has stalled to just two percent annually. Meanwhile, wearable device categories are expanding at double-digit rates.

The prediction of smartphones becoming obsolete is a direct challenge to tech giants. True Ventures is placing concrete bets on a post-smartphone world. This shift could redefine daily life within the next five years.

Thought you’d like to know

What is True Ventures betting on instead of smartphones?

The firm is investing in alternative hardware interfaces. A key example is Sandbar’s voice-activated ring. This device is designed to capture thoughts and notes seamlessly.

Why does Jon Callaghan think smartphones are inefficient?

He calls them a lousy interface for human intelligence. Taking out a phone to send a text or email is prone to error. It also disrupts the natural flow of daily life and thought.

What is Sandbar’s “Stream” ring designed to do?

It has a singular purpose: capturing and organizing voice notes. The ring is not a health tracker or a mini-phone. It aims to be a dedicated thought partner available instantly.

How does this relate to True’s past investments?

The firm has consistently bet on new tech behaviors. It backed Fitbit for wearable fitness and Peloton for connected home exercise. Each bet was initially seen as questionable but created new markets.

Is this just about hardware gadgets?

No. The core thesis is about enabling new human behaviors. The physical device is just the vessel. True invests in the foundational change in how people interact with technology.

What is the market evidence for this shift?

Global smartphone market growth is minimal. Conversely, markets for wearables like smartwatches and rings are growing rapidly. This indicates a consumer shift towards more integrated, passive devices.